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IMMEDIATE RELEASE

Release No: 072-00
February 16, 2000

POSSIBLE FOREIGN MILITARY SALE TO THE NETHERLANDS ANNOUNCED

The Government of the Netherlands has requested a possible sale for the modification and upgrade of 10 P-3C aircraft to include installation of satellite communication systems, secure communications systems, missile warning systems, countermeasures dispensing systems, aircraft cockpit enhancements, acoustic receiver and processor system, missile warning and missile countermeasures dispensing systems, data management system, spare and repairs parts, support equipment, personnel training and training equipment, publications and technical data, system software development and installation, ground/flight testing of new systems and system modifications, U.S. Government and contractor engineering and logistics services and other related elements of program support. The estimated cost is $200 million.

This proposed sale will contribute to the foreign policy and national security objectives of the United States by improving the military capabilities of the Netherlands and further weapon system standardization and interoperability with U.S. forces.

After modification and upgrade, the Netherlands will use these aircraft to enhance the surveillance, anti-submarine and anti-surface warfare capabilities of its maritime forces. The Netherlands intends to operate the upgraded P-3 aircraft in a similar manner to its current P-3C Update II.5 aircraft. The Netherlands will have no difficulty absorbing these upgraded aircraft into its armed forces.

The proposed sale of this equipment and support will not affect the basic military balance in the region.

The prime contractor will be Lockheed Martin Tactical Defense Systems of St. Paul, Minn. One or more proposed offset agreements might be related to this proposed sale.

Implementation of this proposed sale may require the temporary assignment of U.S. Government representatives for one-week intervals twice annually to participate in program management and technical reviews. There will be up to five contractor representatives for one year to the Netherlands.

There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.